Stocks correct down after 10-year peak

Hanoi (VNA) - The local stock market underwent a downward correction on September 11 as investors increased selling pressure to seek short-term cash profits following a 10-year peak.

The benchmark VN-Index lost value in the last trading minute, falling off the 10-year peak recorded on September 8, closed down 0.47 percent at 797.47 points.

The market breadth on the HCM Stock Exchange was negative with 189 stocks declining, 29 rising and 75 closing flat.

Large-cap shares were also on the defensive with 21 of the top 30 largest shares by market value and liquidity (VN30) losing value and only seven advancing.

Top shares, such as Vietnam Prosperity Bank (VPB), Military Bank (MBB), real estate giant VinGroup (VIC), PV Gas (GAS), confectionery Kido Group (KDC), steelmakers Hoa Phat Group (HPG) and Hoa Sen Group (HSG) dropped between 1.9 percent and 3.1 percent, each.

Brewer Sabeco (SAB), insurer Bao Viet Holdings (BCH), private equity Masan Group (MSN), FLC Faros Construction (ROS) and budget airline Vietjet (VJC) slowed last week’s growth and failed to lift the market.

“Profit-taking pressure will remain high in the next sessions after a streak of gains of the VN-Index over the past three weeks,” said Tran Duc Anh, a stock analyst at Bao Viet Securities Co.

The key market index has expanded about 4.2 percent in the last three weeks.

Anh predicted some large-cap stocks would continue to rise but the rally will not be strong enough to support the overall market.

According to Nguyen Hong Diep, director of the Sai Gon-Hanoi Securities Co’s HCM City branch, the market could see a short-term correction but it would not be long and serious.

Diep said the market rally was driven by growth of some major large-cap stocks while a majority of the market has not been on the same rising wave. This phenomenon was part of investors’ anxiety about the market outlook, which is often volatile in the exchange-traded funds’ portflio restructuring period.

However, the 800 point landmark did not indicate a market downturn and the achievement would motivate the market to go further, Diep was quoted as saying on vietstock.vn.

On the Hanoi Stock Exchange, the HNX-Index also dropped 0.99 percent to end September 11 at 102.89 points.

Liquidity rose slightly, totaling 195 million shares worth 4.2 trillion VND (185 million USD) on the two exchanges.-VNA